Real Estate Principals and Practices

Instructor: Jan E. Beran, Esq.

Condominiums, Cooperatives, PUDs and Timeshares
Ch. 23  Jacobus

1.   Condominiums
     a.   Separate and Common Elements
     b.   Owner owns an air lot
          i.   also called Horizontal ownership
          ii.  no subsurface or supersurface rights (except as an undivided
               interest in condo regime)
          iii. Owns the unit in FEE SIMPLE in the unit
          iv.  Owns the common elements as an undivided interest - tenants
               in common
     c.   Establishing documents:
          i.   Master Deed
          ii.  By-laws govern the internal affairs, voting rights, assessments
     d.   Condominium Management
          i.   Maintenance fees
          ii.  Reserves
     e.   Property Taxes and Financing
          i.   Taxes are based on the assessed value of each unit separately.
          ii.  Just as each unit is taxed separately, each can be financed
               separately
     f.   Caveat
          i.   Monthly assessment for maintenance, taxes, and common costs
          ii.  Insurance and reserves
          iii. Quiet enjoyment problems
          iv.  Method of ownership of common areas differ:
          v.   Types of use may be limited (must be owner occupied for
               example) or pets may regulated
          vi.  Board of Directors often controlled by voting blocks (often the
               developer)
     g.   Distinguished from Townhouses
2.   Cooperatives
     a.   Corporation (usually a non-profit) owns land.
     b.   Shareholders (cooperators) have a proprietary lease
     c.   Building managed by the board of directors
     d.   Resale, default and liability problems
3.   PUD
     a.   Developer makes a plan for the area
     b.   Community association
4.   Timeshares
     a.   Several owners each own the same property
     b.   right of possession limited to a period of time
     c.   Two ownership types
          i.   Right-to-use
          ii.  Fee simple